Problem 1

George Lighthouse is starting a company to make 50 foot sailing yachts. The first vessel was completed in 163 days. George has experience with another company and feels that a 72% learning rate is appropriate for this vessel. If the design remains the same and the work crew stays together, how long should it take to complete the 5^th vessel?

Problem 2

How much time is required to process the 100^th unit if the first unit takes 14 hours and the learning rate is 90%?

Problem 3

At US Semi-Conductor Inc., the time required to make a standard semi-conductor chip was 17 seconds for the 1,000^th chip, which they just completed. Given that the firm has experienced an 85% learning curve, how long did it take to make the first chip?

Problem 4

An initial pilot run of 10 units produces the following times. What is the learning rate?

Unit Number	Time (Minutes)
1		39
2		29
3		23
4		19
5		17
6		16
7		15
8		13
9		13
10		12

Problem 5

Jack Simpson, contract negotiator for Nebula Airframe Company, is currently involved in

bidding on a follow-up government contract. In gathering cost data from the first three

units, which Nebula produced under a research and development contract, he found that

the first unit took 2000 labor hours, the second took 1800 labor hours, and the third

took 1692 hours. In a contract for three more units, how many labor hours should

Simpson plan for?